All of the Following Statements Are True Except

question 39

Multiple Choice

All of the following statements are true except:

• A) The threshold for recording items as liabilities is a lower under IFRS than under U.S.GAAP.
• B) The threshold for recording items as liabilities is a lower under U.S.GAAP than under IFRS.
• C) IFRS requires a liability to be recorded as a present value amount.
• D) Under U.S.GAAP, a contingent item should be recorded as a liability if the loss or outflow is probable and can be reasonably estimated.

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Definitions:

Implicit Cost

The opportunity cost associated with a firm's use of resources that it already owns, representing the income the firm foregoes by using these resources in its current capacity.

Total Revenue

The total amount of money received by a company from sales of its products or services, before any expenses are subtracted.

Linear

Pertaining to a relationship or equation that can be graphically represented in a straight line, indicating a constant rate of change.

Upward-Sloping

Describes a line or curve on a graph that increases in height as it moves from left to right, often used to represent the increase in price with an increase in quantity supplied.